The Digital Transformation Initiative (DTI) has assessed how digitalization in 13 major industries is transforming business and wider society. This work has brought us into direct contact with more than 1,000+ executives, policy makers and experts, who have helped uncover some key themes for ensuring the value of digitalization is captured by both business and society.
To date, DTI research has confirmed that digitalization has immense potential: we estimate it could deliver around $100 trillion in value to business and society over the next decade. Barriers to its realization exist – e.g. unfit regulatory frameworks, infrastructure gaps, lack of public trust in new technologies – but if stakeholders are incentivized correctly, the vast majority of that value can be captured.
Building on these findings, the initiative has identified some imperatives for business and policy leaders wanting to unlock the benefits of digitalization. The DTI’s aim now is to move beyond the research and further develop a multi-stakeholder dialogue that broadens understanding of digitalization’s implications and helps realize its benefits.
Customers in a digital world will be won on three fronts: experiences (versus products and services), hyper-personalization and access versus ownership.
To face the future as a viable competitor, companies must make digital the backbone of their enterprise—woven into the fabric of everything they do.
The benefits of digital—from creating jobs to reducing emissions—depends on an evidence based and consistent framework to support public and private collaboration.
The connected digital traveler, an equally digital automotive value chain, and driverless cars are recasting how we use transportation.
By 2020, more than 90 percent of cars sold will be connected. As autos become digital hubs, OEMs are digitalizing to move from selling a product toward providing a customer-centric experience. Add to that equation Google producing a completely driverless vehicle with no steering wheel and Volvo testing self-driving cars with customers—and the world could see an infusion of $3.1T in potential societal benefits.
We expect the aviation, travel and tourism industries to look completely different in less than a decade.
A growing customer base in emerging markets, as well as the rise of online travel aggregators and meta-search engines, is changing the competitive landscape. As $100B migrates from established players to new entrants, leaders are acting now to make digital transformation happen at speed. Who, ultimately, will own the customer relationship as ecosystem roles blur? And how will operating models have to change?
Through 2025, digital technologies are expected to add up to $550B in cumulative economic value to the industry.
From prepping the workforce to ensuring cybersecurity, joining ecosystems to launching digital businesses, industry forerunners are embracing a new digitally-based business model. Many are also closely monitoring pockets of digital disruption, including digitally accelerated biotech enabling the direct-route production of chemicals, or disintermediation by platform or marketplace players. Will the industry follow its usual evolutionary model for change? Or will disruptors force a revolution?
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With the consumer firmly in the driver’s seat, consumer industries are having to rethink their digital value proposition.
Consumer industries are dealing with a tsunami of forces simultaneously. From an aging population to Millennials entering the workforce, the Internet of Things to online consumer communities, regulatory reforms to consumers’ increased focus on responsible environmental practices, consumer companies are under the microscope. How will they deal with the scrutiny and the plethora of forces acting up on them, with billions at stake?
Over the next decade, almost half (45 percent) of industry profits hinge on digital transformation.
Decarbonizing and decentralizing are no small tasks. Industry leaders are slowly turning to digitalization to help them on both fronts. They are optimizing grids and asset life cycles to operate more efficiently. They are integrating customer services, using consumer data to better serve end users. And leaders are moving beyond the simple provision of electricity to living services through ventures like the connected home. Find out how countries like Singapore are leading the way.
The future of healthcare includes smart, empowered care anywhere.
Retail clinics, connected virtual care and intelligent machines are just a few of the changes becoming more prevalent in the modern healthcare model. They are less drivers than collateral fallout from the two biggest shifts changing the industry: shifting the location of care out of the hospital and closer to home, and transforming care, from “diagnose and treat” to “prevent and manage.” Find out how leaders are redesigning their talent maps and exploring new ecosystems to add innovation to their portfolio.
Will logistics companies’ resistance to digital spell their doom or can they reverse the downward spiral with fast action?
$1.5T is at stake in the race to build a dominant global digital platform for the logistics industry. These platforms will become increasingly important, giving small companies the global reach to compete with established giants. In an industry rife with existing inefficiencies, digital could be the savior. But the clock is ticking. Will the big players become speedy, data-driven machines who up operational efficiencies in short order? Only time will tell, but we have some predictions.
Showcasing great content is no longer enough in a world where consumer experiences rule.
Media purveyors are struggling to meet the needs of an ever-changing audience that demands customized content, better viewing recommendations, more personalized and relevant adverts, and online tools to recreate those “office water-cooler” conversations. Creating the right content and presenting it in the correct context will require innovation and digitization, from discovering new methods of creation (e.g. crowdsourcing) to experimenting with imaginative distribution channels (e.g. through connected retail apps).
Digitalization is the latest and most effective weapon of choice to battle stagnant industry growth.
With $400B in value to the industry and society at stake, Mining & Metals companies must embrace digitalization. The initiatives that will have the largest impact are Integrated Platforms, Connected Worker and Remote Operations Centre, which collectively account for more than 60 percent of the value at stake. From DAQRI’s smart helmets to Metso’s sensors to assess steel quality, digitalization uptake is on the rise.
Energy companies can be more agile than ever now, thanks to digital technology. But are they?
Overall agility does not come from incremental investments in digital technology because of the generally unsystematic nature of incremental change. If oil and gas companies instead took a revolutionary approach, making digital the backbone of their operations, they could ensure their place in the race toward the $1T digitalization is expected to bring to the industry.
Artificial intelligence (AI), data analytics, machine learning and platforms are driving a new approach to Professional Services.
Humans and machines are negotiating a new relationship in the industry. AI supports professionals to learn, think and perform better; analytics and machine learning are revolutionizing insight generation; and platforms are disrupting traditional business models by bringing buyers and suppliers together. While the outcomes are good, the changes can be unsettling: 114,000 jobs in the legal sector alone are likely to be automated in the next 20 years.
An octet of technologies is hitting all retailer pressure points
The level of change occurring over the next 10 years in the retail industry will surpass that of the past 40. Find out how The Internet of Things, autonomous vehicles / drones, artificial intelligence / machine learning, robotics, digital traceability, 3D printing, augmented reality / virtual reality and blockchain are already changing the industry. From product design to delivery, no facet of the business will remain untouched.
Better times loom for telcos as they digitalize, with more than $2 trillion in opportunity for the industry and society.
The telecommunications industry ecosystem is providing the fundamental building blocks – access, interconnectivity and applications – that enable the Fourth Industrial Revolution, the digital revolution. But, they still have road to travel. A large share of potential value stemming from digitization across global industries over the next decade is dependent on the telecom industry delivering essential infrastructure, applications and productivity improvements in many areas.